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Financials

China stocks mixed as investors wary of Evergrande woes, power crunch

SHANGHAI, Oct 13 (Reuters) - China stocks were a mixed bag on Wednesday, with coal miners falling and consumer stocks gaining, as Evergrande’s woes and a domestic power crunch continue to haunt the market.

** Better-than-expected domestic trade data helped offset concerns of slowing growth after the International Monetary Fund (IMF) trimmed China’s 2021 growth forecast by 0.1 point, citing a faster-than-expected scaleback of public investment spending.

** China’s blue-chip CSI300 Index rose 0.3% in morning trade, but the Shanghai Composite Index fell 0.4%.

** Hong Kong markets were suspended from trading due to a typhoon.

** The CSI300 Real Estate Index dropped 1.6% amid signs Evergrande’s debt crisis is rippling through the industry, hitting more Chinese developers.

** “Evergrande’s debt issue has put China’s property sector in the spotlight again,” said Zhang Xiaodong, fund manager of Schroders’ Shanghai asset management subsidiary.

** “China’s power shortage is also in focus, and is dealing a blow to the market,” Zhang said, predicting short-term economic headwinds.

** China’s coal subindex tumbled roughly 7% to its lowest level in six weeks on signs the government is taking measures to boost supply, potentially cooling prices.

** Hengyuan Coal, Tianan Coal and Huolinhe Coal plunged 10%, the most allowed within a trading day.

** Coal shares, which had jumped on record prices of the fuel, is down roughly 20% from its Sept. 6 peak.

** China’s energy index also plunged, down nearly 6% by midday. Oil giant PetroChina dropped 5.2%.

** However, consumer-related stocks gained 1.6%.

** An index tracking food & beverage stocks jumped 2.8%. Top spirit maker and index heavyweight Kweichow Moutai Co rose 3% to touch a two-and-a-half-month high. (Reporting by Shanghai Newsroom; Editing by Amy Caren Daniel)

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